Juniper Networks Buys Mykonos Software for $80M

By Fahmida Y. Rashid |
Posted 2012-02-22

Juniper
Networks acquired Mykonos Software for $80 million in cash to add Web
application security to its end-to-end portfolio of security products. The
company said it acquired privately held Mykonos to expand its security
footprint to include "intrusion-deception" systems that protect
Websites and Web applications from advanced attacks. Customers will benefit
from having access to a proactive security approach that can stop attackers in
real time and to an extensive portfolio covering physical, virtual and cloud
environments, Juniper said.

The deal closed Feb. 13.

Web
applications are among the largest unprotected attack surfaces, and the
frequency of attack is increasing, Juniper said. Mykonos focuses on protecting
Web applications from zero-day attacks and advanced threats.

The Web
Intrusion Prevention System from Mykonos will complement Juniper's existing
line of security products, which include firewalls and network-security
systems, Nawaf Bitar, a senior vice president and general manager of Juniper's
security business unit, said in an interview.

"It
fills a Web application security gap we had," Bitar said. Juniper's goal,
he added, is to provide security across all devices, applications, cloud and
the network.

Mykonos
specializes in intrusion-deception techniques that feed attackers false
information as they try to breach a Website or application. The technology tags
and profiles the attacker, based on the device being used and other characteristics,
and uses that information to block future break-in attempts.

The
technology is "unique" because it proactively identifies attackers
and neutralizes threats in real time before damage is done, Brian Marshall, an
IT hardware and data-networking analyst for ISI Group, wrote in a research
note. The acquisition is a "solid addition" to Juniper's security
portfolio and would help service providers and enterprises simplify their
network security, he added.

The Mykonos
deal should be considered a strategic acquisition, according to Bitar. He noted
that all 14 Mykonos employees are expected to stay with Juniper, and the
company will maintain its offices in San Francisco, New York City and
Rochester, N.Y. David Koretz, CEO and founder of Mykonos, will report to Bitar.

Bitar
declined to share details of the long-term product road map, but said there
were several areas in which Mykonos products could be integrated with existing
Juniper offerings. He did not rule out the possibility of data being shared
between the various products or even offering the technology as a service.

"There
are opportunities for Juniper to sell stand-alone and integrated versions of the
Mykonos solution, Jeff Wilson, principal analyst at Infonetics Research, said
in his assessment of the deal.

Mykonos
would operate independently for the short-term and retain the company name for
brand recognition, Koretz said. The security research teams will also work
independently for the time being, but he expects them to eventually work
together. It's increasingly clear that the static approach to security no
longer works and cyber-intelligence is needed, Koretz said.

Juniper's
efforts in the network space were similar to what law-enforcement authorities
and the military accomplish in the physical world, protecting the borders and
actively foiling attacks, Koretz said. Mykonos will provide the intelligence
and insights that will make these efforts more effective. The Juniper-Mykonos
combination will deliver a "one-two punch" that competitors will be
hard-pressed to counter, he claimed.

Koretz
acknowledged that the acquisition was "not the most obvious deal" for
Mykonos, but said it actually made the best sense for the company's overall
strategy because the two companies have similar visions of where security
should go. The deal brings both companies closer to their goals faster, he added.